IDBI Bank stake sale in Apr
Govt to float EoI for offloading 45.48% stake in LIC-controlled bank
image for illustrative purpose
New Delhi: The government plans to invite expression of interest (EoI) to sell its stake in LIC-controlled IDBI Bank by the next month-end, a senior official said.
As part of the divestment, the government plans to sell its entire 45.48 per cent stake eventually. The government may look to sell around a 26 per cent stake in the bank, along with management control to attract investors, the official said. IDBI Bank became a subsidiary of LIC with effect from January 21, 2019, following the acquisition of an additional 8,27,590,885 equity shares. On December 19, 2020, IDBI Bank was reclassified as an associate company due to the reduction of LIC shareholding to 49.24 per cent following the issuance of additional equity shares by the bank under a Qualified Institutional Placement (QIP).
"We have been working on the proposal for a while now and most of the details have been finalised. We expect to invite the expression of interest from investors by end of next month or May," the official said.
The Cabinet Committee on Economic Affairs had given in-principle approval for strategic disinvestment and transfer of management control in IDBI Bank in May last year. Necessary amendments to the IDBI Bank Act have already been made through the Finance Act 2021, and transaction advisors have been appointed.
